This article analyzes Japanese leveraged leases (JLLs), which have been growing in importance as a method of financing numerous types of assets. JLLs were temporarily placed on hold in response to the 2005 tax reforms, but are about to experience resurgence after a recent tax amendment. Specifically, we examine the financial and related issues including the recent tax reforms that a lessee needs to evaluate when financing an asset utilizing the JLL. We discuss the intricacies of the JLL attributes and structures, and develop a valuation model from a lessee9s perspective for evaluating a JLL. This model can be extended to other types of cross-border leases. Finally, we illustrate the evaluation of a JLL utilizing our model with an example in which we derive cash flows, identify the critical variables, and evaluate their impact on the net present value of the lease.